The Indian market has been following a positive growth trend for years and, despite the difficulties experienced by the country in the Covid period, the prospects for development in the medium term remain optimistic. The numbers highlight a strong trend: India is experiencing a period of expansion and Made in Italy products are already the most popular. Italian companies can therefore take advantage of the opportunity to enter the country and give new impetus to turnover and profits.
In the current economic situation, characterized by the consequences of the Russian-Ukrainian conflict and by the increase in the prices of raw materials, India has proved to be an ideal market to make up for the difficulties that persist on the domestic market. In fact, the country is currently the fifth largest economy in the world, based on GDP in dollars at current prices. Furthermore, growth above 6% per year is expected for 2023. Given that it will also be confirmed in the forecasts for 2024. Numbers that place the Subcontinent at the center of Asia's market logic, now that China has lower economic growth prospects than expected up until a few years ago.
The increasingly large middle class therefore enjoys greater spending capacity than in the past, encouraging interest in international brands. Not only: India is also a country experiencing a really interesting digital development. By the end of 2023, internet users are expected to reach 840 million people, a figure that has doubled compared to just four years ago (in 2017 there were 422 million people).
Among the European players, Italy is the 4th largest exporter to India, preceded by Germany, Belgium and France. On the strength of this data, Italian exports to India actually have touched the record figure of 4.8 billion euros, thus exceeding the pre-covid values of 2019 (3.9 billion euros). Furthermore, the data fits into a context of continuous growth, since already in 2021 Made in Italy exports to India had recovered to pre-pandemic levels (3.87 billion euros).
But what is Italian exports focused on in India? As can be seen from the graph below, Indian imports from Italy mainly go to feed the country's industrial apparatus.
In detail, the most representative sector is that of machinery and appliances (1.5 billion euros), followed by chemicals and substances (424 million euros), and in third place come metal products (295 million euros). Completing the Top 5 are computers and electronic devices, products from waste treatment and remediation activities and, finally, electrical devices.
In fact, Made in Italy has a very positive reputation among the Indian business community: many people in the country know the vast potential that Italy-India cooperation can offer to both countries.
This is the opinion of Vishnu Krishna, Director of Octagona India: “Anything that is manufactured or designed in Italy usually has a positive impression on the Indian people. This is the best moment in recent years that Italian companies can exploit to enter or expand into the Indian market. Given the uncertainty that exists in the global markets today due to a number of factors, India stands as one of the major large markets, with a GDP growing by 6% annually, a huge domestic market, tax incentives for starting local businesses (Make in India), a young and English-speaking working class. There are not many such examples in today's world."
Vishnu Krishna's comment highlights the fact that investing abroad and forging trade deals in a high-growth country like India can prove essential for the growth of your business and turnover. The time has come to ride the wave of economic growth, push on the accelerator and immediately plan winning strategies that take all of this into consideration.
Do you want to seize the right opportunities? The next successful company in India could be yours. Contact us and tell us about your internationalization project in India: we will study together the best solution for your needs.
READ ALSO:
India: business opportunities for Italian companies in 2023
The success of Italian companies in India
India bans the use of single-use plastic: what changes for exporting companies
Are you interested in our service?
Fill out the form or contact us at the number
+39 059 9770184
